Essays on Information and Beliefs in Dynamic Choices

Abstract

This thesis investigates how information is processed and used for economic decision making. It is composed of four essays that use theory, experiments and econometrics to investigate dynamic behaviour. The first part of my thesis studies how costly information is gathered and used in a risky environment. I explore how behavioural biases affect information processing and decisions. The second part of my thesis studies how relative performance feedback affects behaviour in competitions. Using new econometric methods and a novel experimental design, I provide evidence in favour of a "positive momentum", whereby past performance has a positive impact on later performance.

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